Stricter rules could hit Rainey Street

AUSTIN (KXAN) - At a commission meeting Tuesday night, the City of Austin's Planning Commission discussed initiating a code amendment that could require new cocktail lounges on Rainey Street to apply for a conditional use permit.

Currently cocktail lounges, or bars, that are in the area downtown zoned as Central Business District, or CBD, do not have to be reviewed by the Planning Commission or the Austin City Council before they can be established. This proposal would change that, but just for the Rainey Street District.

"It's a good thing, and it's a bad thing," said Stuart Thompson, owner of Icenhauer's on Rainey Street. "Because we want more business, but we also want to be a street and an area that people can come, and not just anyone can open a bar and do whatever they want. It would be nice to have some restrictions on that."

Icenhauer's is a well-established cocktail lounge that opened just over a year ago.

"We're doing really well. Really getting a good crowd in here," he said. "It's very unique and different then anywhere else in the city, so I can see why it has been so successful. Everyone wants to get away from downtown every now and then, and this is a good place to do it."

"Quite honestly, the limiting of bars, it's a little bit too late at this point," said Maria Bernhardt, a long-time resident who still live on Rainey Street. "They're already existing. They're here. They're a business and in all fairness, they're not going to be pulled out. So, saying let's limit it or change that is not even feasible."

Instead of trying to stop the growth, Bernhardt suggests the City of Austin focus on safety in the area.

"It's very busy. It's very congested and it's not going to get any better," she said. "Open up the alleys. They're there. Make them safe. Pave them up, light 'em up and just divert the traffic over there so we don't have a tragedy in this area."

There could be as many as a dozen bars around Rainey Street in the next year. According to the Texas Alcoholic and Beverage Commission, on Rainey Street alone, there are 7 alcoholic beverage licenses that have been approved, and there is one currently going through the application process.

Before the new conditional use permit can take affect, the Planning Commission will have approve an ordinance drawn up by city staff so it can eventually make its way to the Austin City Council for final approval.